Correlation Between Nuh Cimento and Hektas Ticaret
Can any of the company-specific risk be diversified away by investing in both Nuh Cimento and Hektas Ticaret at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Nuh Cimento and Hektas Ticaret into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuh Cimento Sanayi and Hektas Ticaret TAS, you can compare the effects of market volatilities on Nuh Cimento and Hektas Ticaret and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Nuh Cimento with a short position of Hektas Ticaret. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuh Cimento and Hektas Ticaret.
Diversification Opportunities for Nuh Cimento and Hektas Ticaret
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuh and Hektas is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Nuh Cimento Sanayi and Hektas Ticaret TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hektas Ticaret TAS and Nuh Cimento is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Nuh Cimento Sanayi are associated (or correlated) with Hektas Ticaret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hektas Ticaret TAS has no effect on the direction of Nuh Cimento i.e., Nuh Cimento and Hektas Ticaret go up and down completely randomly.
Pair Corralation between Nuh Cimento and Hektas Ticaret
Assuming the 90 days trading horizon Nuh Cimento Sanayi is expected to generate 0.59 times more return on investment than Hektas Ticaret. However, Nuh Cimento Sanayi is 1.69 times less risky than Hektas Ticaret. It trades about -0.22 of its potential returns per unit of risk. Hektas Ticaret TAS is currently generating about -0.14 per unit of risk. If you would invest 31,545 in Nuh Cimento Sanayi on October 17, 2024 and sell it today you would lose (2,570) from holding Nuh Cimento Sanayi or give up 8.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nuh Cimento Sanayi vs. Hektas Ticaret TAS
Performance |
| Timeline |
| Nuh Cimento Sanayi |
| Hektas Ticaret TAS |
Nuh Cimento and Hektas Ticaret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuh Cimento and Hektas Ticaret
The main advantage of trading using opposite Nuh Cimento and Hektas Ticaret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuh Cimento position performs unexpectedly, Hektas Ticaret can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hektas Ticaret will offset losses from the drop in Hektas Ticaret's long position.| Nuh Cimento vs. Iskenderun Demir ve | Nuh Cimento vs. Vestel Beyaz Esya | Nuh Cimento vs. Oyak Cimento Fabrikalari | Nuh Cimento vs. Turk Traktor ve |
| Hektas Ticaret vs. SASA Polyester Sanayi | Hektas Ticaret vs. Eregli Demir ve | Hektas Ticaret vs. Turkiye Sise ve | Hektas Ticaret vs. Ford Otomotiv Sanayi |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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